eGuide

Improving Business
Performance with HR
Technology

Improving Business Performance with HR Technology

If only there were more hours in the day to run your business, right? Youre not alone
there. According to a survey by Accounting Today, small business executives report
spending about 25% of their time doing employee-related paperwork. In an 8-hour
day, thats two hours spent not growing the business. Importantly, executives say
they would much rather be spending time generating revenue.
Whats more, spending time on employee-related paperwork has some real costs
attached to it. A recent study by PricewaterhouseCoopers found that small to
medium-sized companies spend an average of $2,000 per employee per year on
administrative paperwork related to payroll, heath care benefits and time and
attendance.
Time and money. Two things most entrepreneurs need more of on any given day.
And the surprising thing is that there are new ways to get more of both: through
technology applied to human resources.

A Look Inside HR Technology

Computer systems designed to help businesses manage employees are often
referred to as human resource management systems (HRMS) and human resource
information systems (HRIS)HR technology.
These systems integrate data and processes, with tools that make it easy for
managers and employees to do it themselves, online, in the cloud, with mobile apps,
and without paper. The streamlining saves resources, money, person-hours and
enables everyone to handle their own HR when its convenient for them, unlimited
by a 9 to 5 clock or even a specific office or geographic location.
The Society for Human Resources Management (SHRM) regularly surveys a range of
differently-sized companies, and regardless of size, respondees report the following
benefits of HR technology:
Greater information accuracy
Shorter process times
Reduced administrative paperwork
Workforce management without increasing staff
Positive ROI

TriNet.com

Improving Business Performance with HR Technology

The Evolution of HR Technology

Generally, HR technology falls into a few categories:
Commercial desktop applications like spreadsheets
HR management applications licensed from a vendor
HR technology custom-developed in-house by IT staff
Comprehensive HR technology systems provided by an outsource, accessed via
web portal
Desktop App: The most basic HR technology is the first in that list, the spreadsheet
designed to log HR functions, categories, data, etc., which requires an abundance of
person-hours to gather the data, enter the data and make sure its accurate.
Licensing and Multiple Vendors: The next step up is licensing various HR
applications from various vendors. You can outsource to multiple vendors, using
each for a specific task and area of process expertise. This approach often entails
finding a payroll vendor, a benefits vendor, another for your 401(k) plan, and so on.
The upside is you are accessing experts and their systems to get the administrative
burdens off your plate. The downside is the amount of time you still may spend
managing the various vendor relationships. There is also the issue of lack of control
over long-term costs for each service. And often the vendors and their systems dont
align with yours. Their business approaches may be at odds with each other or with
your company as well. This way of spreading the HR chores out may appear to be
affordable and efficient separately, but may turn out to be an unwieldy solution over
time.
In-House Customization: The in-house approach to customized HR technologies
built for your specific needs by your own people can be extremely affordable. Your
team will do the planning, and outlining and designing to meet specific company
needs, and will build programs to answer those demands. This is potentially very
appealing in the short term. But keep in mind that your company owns all the
liability. One missed deadline in payroll, tax administration or compliance, or a
misunderstanding of a regulation, a process; or a few glitches in the software, and the
cost of going in-house increases dramatically in terms of potential lawsuits, penalties,
fines, and missed business opportunities.
Single-Source Outsourcing: In terms of technology, the best Professional Employer
Organizations have developed a single information system platform that powers
all of their HR software systems. Many of them have also developed user-friendly
business intelligence that aids executives in decision-making, specifically related to
salary levels, compensation trends and workforce performance data. These online
tools reduce paperwork and the overall administrative burden for small businesses.
They are especially helpful for companies with multi-state workforces.

TriNet.com

Improving Business Performance with HR Technology

The most advanced HR technology providers can streamline the processes for
managers and employees, offering total access anytime and anywhere to the most
important elements of their HR data. Today, so much HR is done via smartphone and
tablet that even desktop-only access can seem obsolete. Here are just some of the
processes enabled by current outsourced HR technology:

The HR Cloud for Managers:

Benefits selection and costing

Benefits enrollment, including open enrollment, new hires, life status changes
Payroll processing and tax administration
Workers compensation administration, including claims reports and
administration
Federal and state employment law regulations, compliance, guidance and
materials
Recruit top candidates using the latest social networks, apps and data-mining
tools
Gather and report accurate data automatically, delivered to dashboards, enabling
sound business decisions
Improved workforce productivity through regular performance management

The HR Cloud for Employees:

Benefits enrollment, including open enrollment, new hires, life status changes
Career development
Direct deposit changes
Expense reporting, approvals and payments automated
Travel booking of all types
Performance management
Pay statements
Pay schedules
Surveys
Leave and paid time off requests
Time and attendance reporting
Training
W2 viewing
W4 changes

TriNet.com

Improving Business Performance with HR Technology

The use of a cloud system, supported by certified HR professionals working with

clients as a team, relieves the minutiae, paperwork and worry that many business
founders and executives deal with when they handle HR themselves. HR technology
improves the gathering of accurate data, delivers reports that can be customized
to company needs, and supports more informed decision making while offering
improved and measurable returns on investment.
Furthermore, recent industry surveys show advantageous numbers related to HR
technology:
40-50% less time spent on HR administration
Up to 40% administrative costs savings

Up to 6.5% increased value of business

The Future of HR Technology: Five Trends

What does the future hold? More than ever, HR technology will become even more
useful in working efficiently across all facets of human resources management. As
identified in a 2013 Society for Human Resources Management report, these are the
five top trends.
1. Cloud data security. Mission critical for both employers and technology

providers.
2. Mobile access for everyone. Doing business and accessing personal HR data

from a smartphone and tablet is now common practice among executives and
employees alike.
3. Social media growth. The more social media is embedded in daily HR processes,

the better communication and collaboration can be across the organization and
even outside it.
4. HR terminology and systems become more standardized and global. Look

forward to more integrated and interconnected systems, databases and tools,

leading to better and more accurate data collection and usage. Remote workers
and offices continue to expand, encouraging employers to be more innovative
with collaboration and tools.
5. Linking HR data to business performance. Sound, strategic collection and

analysis of HR data continues to guide business decisions, improve forecasting

in both short and long term scenarios, identify critical skills gaps and enhance
company performance results.
The future of HR certainly hinges on technological advances and a companys ability
to effectively implement that technology. Ultimately, the combination of technology
and human interaction will play a critical role in the growth and success of a business
and its employees.
TriNet.com

About TriNet
TriNet is a leading provider of a comprehensive human resources solution for small
to medium-sized businesses (SMB). We enhance business productivity as a human
resources partner, managing HR so clients can focus on operating and growing their
core business. Our HR solution includes payroll processing, human capital consulting,
employment law compliance and employee benefits, including health and retirement
plans and workers compensation. Our services are delivered by our expert teams of
HR professionals and enabled by our proprietary, cloud-based technology platform,
which allows clients and employees to efficiently conduct HR transactions anytime and
anywhere. For more information, please visit TriNet.com

Disclaimer
The contents of this white paper have been prepared for educational and information purposes only. The content does not provide legal advice or legal
opinions on any specific matters. Transmission of this information is not intended to create, and receipt does not constitute, a lawyer-client relationship
between TriNet, the author(s), or the publishers and you. You should not act or refrain from acting on any legal matter based on the content without
seeking professional counsel.

2014 TriNet. All rights reserved. All trademarks, trade names, service marks and logos referenced herein belong to their respective companies. Feb. 2014. a0460000022y5sS

Learn more at TriNet.com or call 888.874.6388

Ambitions Realized